President Donald Trump announced a "90-day pause" on tariffs for most foreign goods, except for China, which will see its tariff rate increased to 125%. White House Press Secretary Karoline Leavitt clarified that this pause reduces tariffs across the board to 10%, effective immediately. This decision is made in light of ongoing trade negotiations with over 75 countries, as stated by Trump.
The president attributed this tariff adjustment to the readiness of various nations to engage in discussions without retaliatory measures against the United States. Following the announcement, the stock market responded positively, with the S&P 500 rising by 5.7%, the Dow increasing by 5%, and the Nasdaq gaining nearly 7%.
While most countries will benefit from the reduced tariffs, Trump specifically targeted China, raising the tariff due to what he described as a “lack of respect” shown by China towards global markets. This increase follows China's previous retaliation, imposing an 84% tariff in response to Trump's earlier 50% tariff hike.
In a statement on Truth Social, Trump expressed hope that China would recognize the unsustainability of its trade practices with the U.S. At a press conference, Treasury Secretary Scott Bessent commended Trump for his steadfast negotiating strategy, noting that it has encouraged many countries to come forward for discussions.
Commerce Secretary Howard Lutnick echoed this sentiment, stating that the global community is prepared to collaborate with Trump on reforming international trade, while criticizing China's current approach. The administration appears focused on fostering negotiations to reshape trade relations with various countries, while maintaining a tougher stance on China.